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How can you offset rising water costs?

What are the advantages to seeing what else that the business water market has to offer? Let’s go through insights based on recent events.

Business water rates have gone up by nine per cent, since the start of the new financial year, so now is the time for consumers to protect their position.

The price hike has been attributed to water companies needing funds to find an alternative to discharging sewage into rivers, which has put them under a high level of scrutiny.

There are still a remarkable amount of non-domestic customers who have never switched supplier, despite the English market deregulating seven years ago.

Scotland’s deregulation came in 2008, meaning that customers north of the border have benefitted from comparatively higher savings, which are typically 10 per cent.

Water rates in England can vary, from region to region, due to supply needs and which company owns and maintains the network.

What other cost considerations should be taken into account? A potable water standing charge is a fixed daily fee, applied to all those with an active business water connection.

The charge is defined by the size of pipe that is attached to the building. The funds received are to maintain the external pipes and pumping systems.

Wastewater standing charges are also applicable and are levied to all properties, even those that don’t produce sewage, but are connected to the system.

Highways and surface water rates are both related to rainwater falling on roads, footpaths and into the drainage channels, to cover their costs.

Foul sewage and trade effluent charges could also be added, should the customer produce any liquid waste, which isn’t water or sewage.

With a level of expenditure before water usage even begins, accurate billing becomes even more important, which is where metering solutions can deliver exact consumption data.

The Consultus International Group recently worked with a customer to resolve problems based around unknown water usage and over-charges, which totalled nearly £800,000.

Through Consultus’ CORA (Cost Optimisation & Recovery Audit) service, which validates historical billing, this figure did not have to be paid.

This client also had metering in place, which proved to be ineffective, so Consultus handled negotiations to place AMR (Automated Meter Reader) loggers across their estate.

Optical readers include a camera, attached to the meter, that snaps an image of the physical reading, which is collected through a pulse cable.

This can be matched to procurement. It was on 1 April 2017 that the water market opened for business, in England, but many have yet to engage.

With a cost increase just applied, the need for businesses and organisations to get more for their money has increased. This is where consultancies can provide valuable support.

Average savings of up to 20 per cent are being recorded from exiting out-of-contract rates and finding a new water source, which Consultus can facilitate.

Procurement options include fully outsourced tendering for a supply contract, which puts those requirements in the hands of Consultus’ experienced water professionals.

Fixed and flexible terms can be arranged, which can either protect a client’s budget through cost certainty or leave them open to developments within the water market.

A recent episode of Consultus Chat contains everything else that you need to know about the water industry. To watch this video, click on the weblink at the top of this article.

More information about the water services that Consultus offer can be found by clicking here. To contact us, call 0330 221 1000, fill out an enquiry form or utilise the live webchat function.

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